Trade tickets
What do you guys pay per trade ticket? And how many of you pay them yourself vs. pass them on?
I pay $18 right now per fund trade and do not pass anything along.[quote=theironhorse]What do you guys pay per trade ticket? And how many of you pay them yourself vs. pass them on?
I pay $18 right now per fund trade and do not pass anything along.[/quote] $4.95 per trade, and the client is charged (Edward Jones).thanks Broker24, lol. I know the Jones system, been there. Guess I should have specified independent reps.
$15, and I eat the charge
$9-18…I eat the charge per $2000 plus transactions
OK, I have to ask. I don’t know anything about ticket charges outside EDJ. Do all of your trades generate a ticket charge or are there some that are exempt? If you’re in a busy office with a lot of trade activity and you have say, 200 trades a month, you’re talking about some serious outlay of cash! $3000 for the horse and $3600 for EDJ4now. Doesn’t that seriously cut into your payout?
all trades held in a brokerage account generate tickets for me. direct to funds do not. some fee accounts do, depending on the fund family and whether it is a NON-fee family or not. i clear through National, so one example is Fidelity-in my fee accounts i can buy/sell with no charges there. but if i buy/sell a load waived A share in that same account with an American fund, it is $18.
Spiff-it was a big shock to me when i left Jones. I had 5-6 SIMPLE's in brokerage accounts where employees were making $50/month contributions and i was looking at $18 trade costs per $50 fund purchase, lol.[quote=theironhorse]all trades held in a brokerage account generate tickets for me. direct to funds do not. some fee accounts do, depending on the fund family and whether it is a NON-fee family or not. i clear through National, so one example is Fidelity-in my fee accounts i can buy/sell with no charges there. but if i buy/sell a load waived A share in that same account with an American fund, it is $18.
Spiff-it was a big shock to me when i left Jones. I had 5-6 SIMPLE's in brokerage accounts where employees were making $50/month contributions and i was looking at $18 trade costs per $50 fund purchase, lol.[/quote] Wow, I guess the recruiter didn't mention that.. lol That is seriously something I never thought about.. I guess in the case of the SIMPLE ira you moved that to a fund family? That would reduce your trade cost?? Miss JAll my trades in a brokerage account have a ticket charge, systematics only get charged the first time. If someone has a mutual fund only account, it makes no sense for me to have it in a brokerage account, which is a big change from how I did business at EDJ. Now most of my non-stock biz is at the fund company, unless there is a good reason we need a brokerage account, like an ACAT from EDJ with multiple families, for example.
For my fee accounts, some no loads are no ticket charge, for others I think it is around $10. Individual bonds are $40 or $50, stocks are somewhere inbetween. All ticket charges in my fee accounts get passed on to the client. I was concerned about this at first, but not one client has complained about the nickel and dime charges like I thought they would. Once you make the transistion to fund held as opposed to brokerage, ticket charges aren't really that big of a deal. You just have to make that adjustment, or they will eat you alive. On stocks, there isn't really much you can do, but at least you get a commission to cover the ticket charge.I moved to LPL from Jones 10 months ago–I expected the trade tickets–believe it or not when I started at Jones–we had trade tickets too–but they went away in 1993. But it is the cost of doing business. At LPL trade plus funds (Van Kampen, Alliance Bernstein, Columbia, DWS, Hartford, MFS, Oppenheimer, Putnam) there is no ticket charge…Sponsor Funds (AIM, Federated, Fidelity Advisor, Franklin Templeton, Goldman Sachs, John Hancock, Lord Abbett…, to name some of them) there is a ticket charge of $10…other approved funds in which there are hundreds of fund families (Bear Sterns, American Funds, Blackrock, Catholic Funds, GE, Janus, Prudent, Rydex—ect…,) Carry a ticket charge of $35. Stocks have an $15 ticket Charge…There is no ticket charges for exchanges or direct business through the mutual fund companies. We do keep cost basis on all funds, even no-loads unlike Edward Jones…At Jones you could sell AIM but they would not keep cost basis for you. So if you like doing everything though the brokerage like American Funds–it could cost you more to do it this way…That is why if I have a client that had nothing but American Funds in a IRA—I would move them from the brokerage back to the fund company if I was thinking that some time in the future I was going to leave…The client would pay an IRA fee of only $10 instead of $40 and your transfer hassels and future cost would be so much less. At Jones it is easy to transfer from the brokerage back to the fund company…that way when you transfer the person to say a indy firm—there is no transfer fee—only change of dealer form—no ticket charges since all tickets are done at the fund company and in most cases you can do those trades directly with the fund company on-line…you can also set up ACH with the fund company and the client bank.
I have to amit Jones has a simple simple system---you can link eveything to an account but here you have to have outside accounts, brokerage accounts, fee based accounts ect. Not to mention the record keeping requirements are more here...that being said I do like the freedom to pick from a lot more mutual funds---and believe it or not we have a much much larger bond inventory here than I ever saw at Jones.Sorry, the word is admit!
[quote=Roadhardand believe it or not we have a much much larger bond inventory here than I ever saw at Jones.
[/quote] Well, it couldn't be much smaller! I think the problem in the Jones sytem is that since the Bond Desk doesn't trade for themselves, they only buy bonds that they know we can sell quickly and that will likely not blow up on a client (i.e. highly rated corps/struct, munis, govies, etc.). It's good because we can trust most of what is in inventory, but the downside is often lack of inventory.Lpl does not have a bond inventory. What brokers see are street offers. Ticket charges are $35 , not including trading desk haircuts. Just wanted to clarify.
Jeno1000 is correct, I’m sorry if I mislead anyone–but what we can get are on the system and it is hugh amount–plus we have the AAA, AA, A, BBB, BB, B bonds – buy the way LPL doesn’t trade bonds for themselves either. Thanks for the correction Jeno1000
So, EDJ protects it’s clients by limiting what the FAs have access to in our inventory. Like B24 said before, we aren’t going to blow up anyone’s account selling the bonds Jones has for us.
BUT, at LPL, you have the freedom to blow up client's bond portfolio's by purchasing whatever kind of bonds you want. No limits on quality, rating, etc. You see it you buy it.OR, maybe EDJ is protecting it’s clients FROM it’s FAs. It depends on how you look at it.
I believe Jones had a huge issue that they wrote blow up in their face a while back.
Ask some of the ol' timers' about that.... But honestly, what are the odds of a 40 year AAA rated insured bond blowing up????........ I guess we will answer that in.... well.... 40 years now won't we. I mean honestly, everyone can use a little 40 year bond in their portfolio..... right????..... Aren't they still teaching that at KFC... I mean KY Jell... I mean KYC class. You know kids drown in the "kiddie pool" every year, and just because you are in the kiddie pool at Jones does not mean bad things can't happen.... speaking of, how are those countrywide bonds doing anyway.... I am glad I did not sell any of that crap to my clients. Well, I guess that is what happens in the "kiddie pool"; sometimes you get a "floater" or two if you know what I mean.Touche!
Ballwin bonds. More than 30 years ago. Ballwin went out of business and Jones was left holding the bag. Jones made the clients whole BTW. If that would have happend with LPL, who would have been left holding the bag?That may actually be true. However, let's not forget how many indy's are former EDJ advisors. Going indy doesn't magically make you smarter...OR, maybe EDJ is protecting it’s clients FROM it’s FAs. It depends on how you look at it.
[quote=doneWjones]I believe Jones had a huge issue that they wrote blow up in their face a while back.
Ask some of the ol' timers' about that.... But honestly, what are the odds of a 40 year AAA rated insured bond blowing up????........ I guess we will answer that in.... well.... 40 years now won't we. I mean honestly, everyone can use a little 40 year bond in their portfolio..... right????..... Aren't they still teaching that at KFC... I mean KY Jell... I mean KYC class. You know kids drown in the "kiddie pool" every year, and just because you are in the kiddie pool at Jones does not mean bad things can't happen.... speaking of, how are those countrywide bonds doing anyway.... I am glad I did not sell any of that crap to my clients. Well, I guess that is what happens in the "kiddie pool"; sometimes you get a "floater" or two if you know what I mean. [/quote] It's funny how so many people think that we just stuff porfolios with 40 year bonds (or 30 or whatever). I guess I would have to ask - at ANY firm, what is the easiest way to get brokers started? Selling highly rated long bonds, solid stock picks, quality MFD's, etc. This whole long-bond thing at Jones is really just the get-you-started stuff. If an advisor can't move past that after a year or so in the business, it's not Jones' fault.Spiff,
Then I am sure Jones will pick up the tab if Countrywide goes under too.... and if Mrs. nervous nelly loses money on her CAIBX..... Jones will be their, GUARANTEED!* CLEAR THE POOL!!! WE HAVE A FLOATER!!! *Note: Jones guarantees only to tell you what you want to here and reinsures through AMBAC this guarantee to only tell you what you want to hear... GUARANTEED! If you still don't believe this guatantee please drink your koolaid and then read again.different thread, same discussion. i think the problem people have with Jones in regards to 30 year muni’s is that in their training you call 500 people in 1 day asking them to buy a Muni bond-no matter their age/need etc. i know, i faked my way through that class and had a “discussion” with the instructor concerning this.
also, the week i was there i bet 75% of all people called to sell C.horse- my class called on xom in 2002 in the high 20s or low 30s. what’s your point about citi? Oh, EDJ was the only shop with a buy on it, I get it.
[quote=theironhorse]different thread, same discussion. i think the problem people have with Jones in regards to 30 year muni’s is that in their training you call 500 people in 1 day asking them to buy a Muni bond-no matter their age/need etc. i know, i faked my way through that class and had a “discussion” with the instructor concerning this.
also, the week i was there i bet 75% of all people called to sell C. [/quote] It was just a training class. I don't get it. What are newbies at ML or SB or MS told to sell on their first day? I am sure not something more harmless than a 30 year insured muni, shares of XOM, or a GE Capital Bond paying 6%. Unless you are selling CD's, 90% of the time, this ain't gonna hurt someone too bad. Oh, and by the way, if you have some money available, I think you should buy some today.Until a about 3 years ago–Jones was selling the hinder off those GMAC SmartNotes–they even sent me a clock and some interest rate calculators for the office from St Louis! They also sold some Ford Credit Notes, Countrywide, KMart (Before they went bankrupt), and I could keep going–would you recommend your clients buy them now? Why not–they blew up on the FA’s at Jones and everyone else—this isn’t to bad mouth–EDJ, everybody sold them too. But never say Jones only sells those that won’t blow up on the client! Besides the question was trade tickets!
my point is NOT what they are selling. i just found it funny i sat in a class with people selling a “safe” stock like C, since Jones makes sure what the IR sells is screened some 10 times to get on their buy list. and by the way, their list has what, 2 stocks on the sell list, all automakers? i could care less what they sell.
my point it trying to sell it to EVERYONE! and i completely disagree on your statement: "I am sure not something more harmless than a 30 year insured muni" this is probably the WORST investment you can sell someone. ever hear of inflation and purchasing power? i really have no beef with Jones. i have referred a few people to them since i left. if you have no sales experience and are brand new, they are a great place to get good training.Roadhard,
Thank you for bringing the thread back on topic. As a bank broker, we always paid for the $20 ticket charge. As an EJ FA, A $4.95 charge on the trade confirmation.[quote=theironhorse]my point is NOT what they are selling. i just found it funny i sat in a class with people selling a “safe” stock like C, since Jones makes sure what the IR sells is screened some 10 times to get on their buy list. and by the way, their list has what, 2 stocks on the sell list, all automakers? i could care less what they sell.
my point it trying to sell it to EVERYONE! and i completely disagree on your statement: "I am sure not something more harmless than a 30 year insured muni" this is probably the WORST investment you can sell someone. ever hear of inflation and purchasing power? i really have no beef with Jones. i have referred a few people to them since i left. if you have no sales experience and are brand new, they are a great place to get good training.[/quote] No, we have three, thank you very much. We put a sell on BA in the mid 50's. You training wasn't really about the content of your calls. It was more about the contact. They knew that you probably weren't really going to sell C to anyone. They just wanted to get you going on the phone. The only way you can call C a bad investment is in hindsight. Until the last year, what was wrong with C? Good, rising dividend. Good total returns. Looking back at a 10 year hypo w/ div's reinvested, until last year when the bottom fell out, you had tripled your money. You still haven't lost any principle. So I would say that unless your CSD was last year, C was a good solid choice at the time.Spiff-first off, i am not even close to the “Jones haters” we have all over these boards. I have nothing inherently against them. I was simply pointing out that even though Jones tries to “scrub” everything and make only the best stuff available to their IR’s, stuff is going to slip through. It applies more to the bond inventory discussion than stock picking. Nothing was wrong with C when we called. And I had the same discussion with my trainer. We are calling to uncover more info, etc etc. Anyway, it was just meant as a comment and not a “Jones made me call on a crappy stock.”
[quote=Spaceman Spiff][quote=theironhorse]my point is NOT what they are selling. i just found it funny i sat in a class with people selling a “safe” stock like C, since Jones makes sure what the IR sells is screened some 10 times to get on their buy list. and by the way, their list has what, 2 stocks on the sell list, all automakers? i could care less what they sell.
my point it trying to sell it to EVERYONE! and i completely disagree on your statement: "I am sure not something more harmless than a 30 year insured muni" this is probably the WORST investment you can sell someone. ever hear of inflation and purchasing power? i really have no beef with Jones. i have referred a few people to them since i left. if you have no sales experience and are brand new, they are a great place to get good training.[/quote] No, we have three, thank you very much. We put a sell on BA in the mid 50's. You training wasn't really about the content of your calls. It was more about the contact. They knew that you probably weren't really going to sell C to anyone. They just wanted to get you going on the phone. The only way you can call C a bad investment is in hindsight. Until the last year, what was wrong with C? Good, rising dividend. Good total returns. Looking back at a 10 year hypo w/ div's reinvested, until last year when the bottom fell out, you had tripled your money. You still haven't lost any principle. So I would say that unless your CSD was last year, C was a good solid choice at the time. [/quote] We currently have 6 SELLS. Often times, once a stock hits SELL for some time, and the fundamentals change, we drop coverage (as with the auto industry - we don't even cover those anymore - we dropped them with a SELL rating).The $4.95 is not a ticket charge like you said – it is a confirmation charge…LPL has one too and it is $5.00…a ticket charge is the charge paid by the FA not the client! In LPL world we have them but not on everything! In EDJ world you don’t have them on anything.
I didn't peg you as a Jones hater. You've not told me to go drink any kool aid, yet. OK, on with the trade ticket charge conversation!!Spiff-first off, i am not even close to the “Jones haters” we have all over these boards. I have nothing inherently against them. I was simply pointing out that even though Jones tries to “scrub” everything and make only the best stuff available to their IR’s, stuff is going to slip through. It applies more to the bond inventory discussion than stock picking. Nothing was wrong with C when we called. And I had the same discussion with my trainer. We are calling to uncover more info, etc etc. Anyway, it was just meant as a comment and not a “Jones made me call on a crappy stock.”
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